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What Awaits Principal Financial (PFG) This Earnings Season?

Zacks Equity Research

Principal Financial Group PFG is slated to report fourth-quarter 2019 results on Jan 28, after market close. The company delivered negative earnings surprise of 15.75% in the last reported quarter.

Let’s see how things have shaped up for this announcement.

Principal Financial fourth-quarter earnings are likely to have benefited from expanded global distribution network and a compelling portfolio of retirement, investment and protection solutions.

Continued growth in fee, spread and risk businesses are likely to have boosted revenues. The Zacks Consensus Estimate for revenues is pegged at $4.1 billion, suggesting 5.9% growth from the year-earlier quarter's reported figure.

Assets under management are likely to have benefited from better performances at its three asset management and asset accumulation segments, backed by extensive distribution footprint, best-in-class solutions, strategic buyouts and operational discipline.

Operating expenses are likely to have increased due to increased branding expenses, benefit costs as well as variable sales expenses.

The company’s share buyback activity is likely to have aided the bottom line.

The Zacks Consensus Estimate for earnings stands at $1.42 per share, indicating an increase of 27.9% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Principal Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Principal Financial has an Earnings ESP of +0.76%. This is because the Most Accurate Estimate of $1.43 is higher than the Zacks Consensus Estimate of $1.42. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Principal Financial Group, Inc. Price and EPS Surprise

Principal Financial Group, Inc. Price and EPS Surprise
Principal Financial Group, Inc. Price and EPS Surprise

Principal Financial Group, Inc. price-eps-surprise | Principal Financial Group, Inc. Quote

Zacks Rank: Principal Financial carries a Zacks Rank #3.

Other Stocks to Consider
   

Some other stocks from the investment management industry with the right combination of elements to surpass estimates this time around are as follows:

Affiliated Managers Group, Inc. AMG has an Earnings ESP of +2.16% and a Zacks Rank of 3. The company will announce fourth-quarter earnings on Feb 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameriprise Financial, Inc. AMP is set to report fourth-quarter earnings on Jan 29. The stock has an Earnings ESP of +0.39% and a Zacks Rank of 2.

Legg Mason, Inc. LM has an Earnings ESP of +1.59% and a Zacks Rank #2. The company is slated to release fourth-quarter earnings on Jan 29.

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Legg Mason, Inc. (LM) : Free Stock Analysis Report
 
Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
 
Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
 
Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report
 
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